Warning: Brent is about to fool you and break 63 resistance
Oil strongly resists to go down despite ongoing physical oil oversupply. Many would think that 63 resistance will not be broken and it's safe to short at this level. The market will fool you on that.
From EW structure we see that the main A-B-C zigzag is not yet completed and what could be taken for a beginning of a downward impulse during Feb 18-22 was in fact another "complex three" - corrective wave. It is likely that the market is currently drawing a contracting triangle as part of a complex C wave and we know that a triangle is _never_ a final construct. Is is just another wave B of one inner degree and the final C wave is yet to come. I therefore expect 63 will be broken, a few stops will be collected by the market and when it reaches 67, it will reverse.
Upon reaching 67, shorting opportunities will be immense.
From EW structure we see that the main A-B-C zigzag is not yet completed and what could be taken for a beginning of a downward impulse during Feb 18-22 was in fact another "complex three" - corrective wave. It is likely that the market is currently drawing a contracting triangle as part of a complex C wave and we know that a triangle is _never_ a final construct. Is is just another wave B of one inner degree and the final C wave is yet to come. I therefore expect 63 will be broken, a few stops will be collected by the market and when it reaches 67, it will reverse.
Upon reaching 67, shorting opportunities will be immense.